ICICI Prudential Pension Fund – Scheme A – TIER I: A Reliable Path to Retirement Security in 2025

ICICI Prudential Pension Fund – Scheme A – TIER I: A Reliable Path to Retirement Security in 2025

Planning for retirement is no longer a luxury—it’s a necessity. Among the many options available under India’s National Pension System (NPS), ICICI Prudential Pension Fund – Scheme A – TIER I stands out as a dependable and performance-driven choice for conservative investors seeking long-term financial stability.

What Is ICICI Prudential Pension Fund – Scheme A – TIER I?

This scheme is managed by ICICI Prudential Pension Funds Management Co. Ltd., one of the most trusted names in India’s financial services sector. It is designed specifically for Tier I NPS account holders, which is the mandatory retirement savings account under the NPS framework. The scheme primarily invests in alternative bonds and real estate investment trusts (REITs), offering a low-risk, stable return profile.

Performance Snapshot

As of June 26, 2025, the scheme’s Net Asset Value (NAV) stands at ₹19.2079. Over the past year, it has delivered an impressive 15.86% return, with a consistent 5-year average of 9%. This makes it one of the top-performing low-equity NPS schemes in its category.

Portfolio Composition

The fund’s asset allocation is strategically diversified:

• 62.24% in AAA-rated REITs and infrastructure trusts
• 34.63% in AA+ rated debt instruments
• 3.13% in cash and equivalents

Top holdings include:

• IndiGrid Infrastructure Trust (14.41%)
• Embassy Office Parks REIT (12.58%)
• Brookfield India REIT (8.86%)
• HDFC Bank Additional Tier 1 Bonds (9.46%)

This mix ensures both capital preservation and moderate growth, making it ideal for risk-averse investors.

Tax Benefits and Suitability

Investments in this scheme qualify for tax deductions under Section 80CCD(1B) of the Income Tax Act, allowing an additional deduction of up to ₹50,000 over and above the ₹1.5 lakh limit under Section 80C. This makes it a tax-efficient way to build a retirement corpus.

The scheme is best suited for:

• Salaried individuals looking for stable, long-term returns
• Investors nearing retirement who prefer low volatility
• Anyone seeking tax-saving investment options with government backing

Why Choose This Scheme?

• Low-risk profile with minimal equity exposure
• Consistent returns backed by high-quality instruments
• Tax efficiency under the NPS framework
• Professional fund management by ICICI Prudential

Final Thoughts

In a world of market uncertainties, ICICI Prudential Pension Fund – Scheme A – TIER I offers a calm harbor for your retirement savings. With its solid track record, prudent asset allocation, and tax advantages, it’s a smart choice for anyone serious about securing their financial future.

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Let your retirement dreams take shape—one disciplined investment at a time.